
Significant hike in trade price confirmed by Nintendo
Nintendo has confirmed to MCV that it is to increase the trade price of its Wii console for UK retailers, a move that could lead to the console’s price rising on the UK High Street.
However, retail will decide whether the machine's current £179.99 price point sticks, or whether consumers face paying more for the machine in the future.
MCV understands that retailers are being told that trade prices for Wii will increase by around £16.50, or around £19 including VAT. As a result retailers face making virtually no money on each machine sold if they stick to current pricing.
“Due to the severe and continuing depreciation of the pound, we are, unfortunately, having to raise our trade price to UK retailers of Wii hardware,” a Nintendo UK spokesperson told MCV.
“The price that they then offer to consumers is, of course, up to the retailers. We are only – reluctantly – raising our trade price now to retailers due to unprecedented and sustained depreciation of the pound. This is a problem brought about by extreme currency fluctuations that are a symptom of the global economic situation.”
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The move puts increasing pressure on UK indies, who will face the choice of swallowing the sharp drop in profit per machine or upping their prices – something that national retailers and supermarkets are unlikely to do.
The move follows similar price hikes from the likes of Apple and Dell.
Comments
As a result retailers face making virtually no money
Make that face losing money.
I think Nintendo's reluctance to announce an increase of RRP is that retailers have been comfortable selling above RRP for quite a while due to stock constraints. They'll let the market settle at a price (presumably around £199).
Please explain
I'm not complaining here, but I don't fully understand. Economics isn't my thing, so I gracefully accept my ineptitude in this area, but what gets me is the following:
I recall there being problems for farmers when the pound was high that Europe wasn't buying produce because it was too costly. However, now the pound is losing strength, prices are rising here, which seems to contradict this previous issue.
Having said that, while typing this, I think I cleared it up for myself. Pound high = bad for exports; pound low = bad for imports.
It seems you're damned if you do and you're damned if you don't. I say we do away with money and trade with a single global curreny - Insult Arm Wrestling (Or sword fighting, for the over 18s...)
price rise
only one answer to this as a indie, dont sell wii consoles until the price comes back down. nintendo will see sales drop off, price will come back down job done ! let all the silly supermarkets sell at a loss
Re: price rise
Demand is so high for the Nintendo Wii that it just shows Nintendo can pretty much do what they want. Were this a PS3 for example it could never happen, as people are fed up as it is with the price point of the machine currently with the economy as it is. This price increase to trade won't effect things one bit and will see Nintendo make more money long term as they aren't exactly going to lower it back once the £ sorts itself out are they.
Re: Re: price rise
This is Nintendo purely taking advantage of their position in the market. Do they really expect people to believe that after being on the market for 2 years the manufacturing costs haven't come down??
It's the same as the overly expensive price in the UK for the DSi, a nice tidy profit for Nintendo and two fingures up to the retailers that have supported them and got them where they are.
A Nintendo Boycott gets my vote!
Re: Re: Re: price rise
I see people complaining but everything that is imported in to the country from overseas is suffering from an increase in prices, its not greed its ECONOMICS. The pound is to blame not Nintendo. Anyone intending to boycott Wii sales will only do themselves harm as there are many more retailers who will benefit from the extra stock and custom.
It must be a first
It must be the first time I have seen the price for a console rise in all the time I have been in this industry
I have seen plenty set at the wrong price only to be "re-aligned" shortly after release
In some respects Nintendo must suspect that they got the price wrong from the start
To have a machine that even now is still allocated and at key periods can still be sold at a premium on ebay etc must indicate that they could have set a slightly higher retail from the start
Re: Re: Re: price rise
Well, we are quite pleased with the increase we will see less imported Wii consoles on the Danish market - so maybe Nintendo has just listened to the complaints from the European market.
So thank you for taking this seriously, Nintendo.
Re: Re: Re: Re: price rise
Whoever said the Wii is so popular Nintendo can do whatever they want is obviously ignorant to everything that has been happening in the Japaneese market the past 4 months.
Re: Re: Re: Re: Re: price rise
we will stop support for this console, the only alternative is to sell @ £200, wii software doesnt sell like real next gen consoles so this doesnt worry me,
Re: Re: Re: Re: Re: Re: price rise
prices are likely to go up if exchange rates change, it has affected all imports, we should be more worried the supermarkets AKA sainsburys are selling the machine for £159.99.
may stop the crazy bundles some stores offer.
wii price
There loads of talk about the Wii price going up but so far to date i have seen the opposite price has come down than go up, please see places like John Lewis offering way below RRP for UK
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